Master Budget : The master budget is the core budget that describes the full process of the budget. This budget shows all the operating and financial plans of the company for an accounting period and this budget includes all the budgeted financial statements. Production Budget: The production budget refers to that budget which forecasts the production for the future accounting period. The budgeted production for any financial period is planned by combining the forecasted unit of sales and the finished goods inventory and deducting the beginning goods inventory. Revenue Budget: The revenue budget is the budget prepared to estimate the revenue, the expected number of units to be produced and the expected selling price for each product. The revenue budget is the first step for an operating budget and the basis for the production and cost of goods sold budget. Direct Labor Budget: The direct labor budget provides information about the total direct manufacturing labor hours and the cost of the total direct manufacturing labor hour. To prepare: The revenue budget.

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Answer 1

Question

Chapter 6, Problem 6.32P

1.

To determine

Master Budget:

The master budget is the core budget that describes the full process of the budget. This budget shows all the operating and financial plans of the company for an accounting period and this budget includes all the budgeted financial statements.

Production Budget:

The production budget refers to that budget which forecasts the production for the future accounting period. The budgeted production for any financial period is planned by combining the forecasted unit of sales and the finished goods inventory and deducting the beginning goods inventory.

Revenue Budget:

The revenue budget is the budget prepared to estimate the revenue, the expected number of units to be produced and the expected selling price for each product. The revenue budget is the first step for an operating budget and the basis for the production and cost of goods sold budget.

Direct Labor Budget:

The direct labor budget provides information about the total direct manufacturing labor hours and the cost of the total direct manufacturing labor hour.

To prepare: The revenue budget.

2.

To determine

To explain: The questions the CEO can ask the marketing manager while reviewing the revenue budget.

3.

To determine

To prepare: The production budget.

4.

To determine

To prepare: The direct materials purchases budget in quantities.

5.

To determine

The direct materials purchases budget in dollars.

6.

To determine

To prepare: The direct manufacturing labor costs budget.

7.

To determine

To prepare: The ending inventories for finished goods inventory.

8.

To determine

To explain: The questions a CEO can ask the production manager while reviewing the production, direct materials and manufacturing labor budgets.

9.

To determine

To explain: The help a budget can make when the top management is better managing the company.

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This week we focused on national differences from the standpoint of political, economic, and legal differences. For this discussion, consider the following scenario: Your career is expanding with an opportunity to support your company's growth in a non-U.S. country. Choose a country that you believe is a viable expansion option. Support your choice for this country by learning about the country's political, economic, and legal system. Share this information with your classmates by summarizing how these areas would contribute to the successful expansion project.

Mega Company believes the price of oil will increase in the coming months. Therefore, it decides to purchase call options on oil as a price-risk-hedging device to hedge the expected increase in prices on an anticipated purchase of oil.On November 30, 20X1, Mega purchases call options for 14,000 barrels of oil at $30 per barrel at a premium of $2 per barrel with a March 1, 20X2, call date. The following is the pricing information for the term of the call: Date Spot Price Futures Price (for March 1, 20X2, delivery) November 30, 20X1 $ 30 $ 31 December 31, 20X1 31 32 March 1, 20X2 33 The information for the change in the fair value of the options follows: Date Time Value Intrinsic Value Total Value November 30, 20X1 $ 28,000 $ –0– $ 28,000 December 31, 20X1 6,000 14,000 20,000 March 1, 20X2 42,000 42,000 On March 1, 20X2, Mega sells the options at their value on that date and acquires 14,000 barrels of oil at the spot price. On June 1, 20X2, Mega sells the…

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Answer 2

Question

Chapter 6, Problem 6.32P

1.

To determine

Master Budget:

The master budget is the core budget that describes the full process of the budget. This budget shows all the operating and financial plans of the company for an accounting period and this budget includes all the budgeted financial statements.

Production Budget:

The production budget refers to that budget which forecasts the production for the future accounting period. The budgeted production for any financial period is planned by combining the forecasted unit of sales and the finished goods inventory and deducting the beginning goods inventory.

Revenue Budget:

The revenue budget is the budget prepared to estimate the revenue, the expected number of units to be produced and the expected selling price for each product. The revenue budget is the first step for an operating budget and the basis for the production and cost of goods sold budget.

Direct Labor Budget:

The direct labor budget provides information about the total direct manufacturing labor hours and the cost of the total direct manufacturing labor hour.

To prepare: The revenue budget.

2.

To determine

To explain: The questions the CEO can ask the marketing manager while reviewing the revenue budget.

3.

To determine

To prepare: The production budget.

4.

To determine

To prepare: The direct materials purchases budget in quantities.

5.

To determine

The direct materials purchases budget in dollars.

6.

To determine

To prepare: The direct manufacturing labor costs budget.

7.

To determine

To prepare: The ending inventories for finished goods inventory.

8.

To determine

To explain: The questions a CEO can ask the production manager while reviewing the production, direct materials and manufacturing labor budgets.

9.

To determine

To explain: The help a budget can make when the top management is better managing the company.

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Answer 3

Question

Chapter 6, Problem 6.32P

1.

To determine

Master Budget:

The master budget is the core budget that describes the full process of the budget. This budget shows all the operating and financial plans of the company for an accounting period and this budget includes all the budgeted financial statements.

Production Budget:

The production budget refers to that budget which forecasts the production for the future accounting period. The budgeted production for any financial period is planned by combining the forecasted unit of sales and the finished goods inventory and deducting the beginning goods inventory.

Revenue Budget:

The revenue budget is the budget prepared to estimate the revenue, the expected number of units to be produced and the expected selling price for each product. The revenue budget is the first step for an operating budget and the basis for the production and cost of goods sold budget.

Direct Labor Budget:

The direct labor budget provides information about the total direct manufacturing labor hours and the cost of the total direct manufacturing labor hour.

To prepare: The revenue budget.

2.

To determine

To explain: The questions the CEO can ask the marketing manager while reviewing the revenue budget.

3.

To determine

To prepare: The production budget.

4.

To determine

To prepare: The direct materials purchases budget in quantities.

5.

To determine

The direct materials purchases budget in dollars.

6.

To determine

To prepare: The direct manufacturing labor costs budget.

7.

To determine

To prepare: The ending inventories for finished goods inventory.

8.

To determine

To explain: The questions a CEO can ask the production manager while reviewing the production, direct materials and manufacturing labor budgets.

9.

To determine

To explain: The help a budget can make when the top management is better managing the company.

Expert Solution & Answer

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Answer 4

Question

Chapter 6, Problem 6.32P

1.

To determine

Master Budget:

The master budget is the core budget that describes the full process of the budget. This budget shows all the operating and financial plans of the company for an accounting period and this budget includes all the budgeted financial statements.

Production Budget:

The production budget refers to that budget which forecasts the production for the future accounting period. The budgeted production for any financial period is planned by combining the forecasted unit of sales and the finished goods inventory and deducting the beginning goods inventory.

Revenue Budget:

The revenue budget is the budget prepared to estimate the revenue, the expected number of units to be produced and the expected selling price for each product. The revenue budget is the first step for an operating budget and the basis for the production and cost of goods sold budget.

Direct Labor Budget:

The direct labor budget provides information about the total direct manufacturing labor hours and the cost of the total direct manufacturing labor hour.

To prepare: The revenue budget.

2.

To determine

To explain: The questions the CEO can ask the marketing manager while reviewing the revenue budget.

3.

To determine

To prepare: The production budget.

4.

To determine

To prepare: The direct materials purchases budget in quantities.

5.

To determine

The direct materials purchases budget in dollars.

6.

To determine

To prepare: The direct manufacturing labor costs budget.

7.

To determine

To prepare: The ending inventories for finished goods inventory.

8.

To determine

To explain: The questions a CEO can ask the production manager while reviewing the production, direct materials and manufacturing labor budgets.

9.

To determine

To explain: The help a budget can make when the top management is better managing the company.

Expert Solution & Answer

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Answer 5

Chapter 6, Problem 6.32P

1.

To determine

Master Budget:

The master budget is the core budget that describes the full process of the budget. This budget shows all the operating and financial plans of the company for an accounting period and this budget includes all the budgeted financial statements.

Production Budget:

The production budget refers to that budget which forecasts the production for the future accounting period. The budgeted production for any financial period is planned by combining the forecasted unit of sales and the finished goods inventory and deducting the beginning goods inventory.

Revenue Budget:

The revenue budget is the budget prepared to estimate the revenue, the expected number of units to be produced and the expected selling price for each product. The revenue budget is the first step for an operating budget and the basis for the production and cost of goods sold budget.

Direct Labor Budget:

The direct labor budget provides information about the total direct manufacturing labor hours and the cost of the total direct manufacturing labor hour.

To prepare: The revenue budget.

2.

To determine

To explain: The questions the CEO can ask the marketing manager while reviewing the revenue budget.

3.

To determine

To prepare: The production budget.

4.

To determine

To prepare: The direct materials purchases budget in quantities.

5.

To determine

The direct materials purchases budget in dollars.

6.

To determine

To prepare: The direct manufacturing labor costs budget.

7.

To determine

To prepare: The ending inventories for finished goods inventory.

8.

To determine

To explain: The questions a CEO can ask the production manager while reviewing the production, direct materials and manufacturing labor budgets.

9.

To determine

To explain: The help a budget can make when the top management is better managing the company.

Answer 6

Chapter 6, Problem 6.32P

1.

To determine

Master Budget:

The master budget is the core budget that describes the full process of the budget. This budget shows all the operating and financial plans of the company for an accounting period and this budget includes all the budgeted financial statements.

Production Budget:

The production budget refers to that budget which forecasts the production for the future accounting period. The budgeted production for any financial period is planned by combining the forecasted unit of sales and the finished goods inventory and deducting the beginning goods inventory.

Revenue Budget:

The revenue budget is the budget prepared to estimate the revenue, the expected number of units to be produced and the expected selling price for each product. The revenue budget is the first step for an operating budget and the basis for the production and cost of goods sold budget.

Direct Labor Budget:

The direct labor budget provides information about the total direct manufacturing labor hours and the cost of the total direct manufacturing labor hour.

To prepare: The revenue budget.

Answer 7

Chapter 6, Problem 6.32P

1.

To determine

Master Budget:

The master budget is the core budget that describes the full process of the budget. This budget shows all the operating and financial plans of the company for an accounting period and this budget includes all the budgeted financial statements.

Production Budget:

The production budget refers to that budget which forecasts the production for the future accounting period. The budgeted production for any financial period is planned by combining the forecasted unit of sales and the finished goods inventory and deducting the beginning goods inventory.

Revenue Budget:

The revenue budget is the budget prepared to estimate the revenue, the expected number of units to be produced and the expected selling price for each product. The revenue budget is the first step for an operating budget and the basis for the production and cost of goods sold budget.

Direct Labor Budget:

The direct labor budget provides information about the total direct manufacturing labor hours and the cost of the total direct manufacturing labor hour.

To prepare: The revenue budget.

Answer 8

2.

To determine

To explain: The questions the CEO can ask the marketing manager while reviewing the revenue budget.

Answer 9

2.

To determine

To explain: The questions the CEO can ask the marketing manager while reviewing the revenue budget.

Answer 10

3.

To determine

To prepare: The production budget.

Answer 11

3.

To determine

To prepare: The production budget.

Answer 12

4.

To determine

To prepare: The direct materials purchases budget in quantities.

Answer 13

4.

To determine

To prepare: The direct materials purchases budget in quantities.

Answer 14

5.

To determine

The direct materials purchases budget in dollars.

Answer 15

5.

To determine

The direct materials purchases budget in dollars.

Answer 16

6.

To determine

To prepare: The direct manufacturing labor costs budget.

Answer 17

6.

To determine

To prepare: The direct manufacturing labor costs budget.

Answer 18

7.

To determine

To prepare: The ending inventories for finished goods inventory.

Answer 19

7.

To determine

To prepare: The ending inventories for finished goods inventory.

Answer 20

8.

To determine

To explain: The questions a CEO can ask the production manager while reviewing the production, direct materials and manufacturing labor budgets.

Answer 21

8.

To determine

To explain: The questions a CEO can ask the production manager while reviewing the production, direct materials and manufacturing labor budgets.

Answer 22

9.

To determine

To explain: The help a budget can make when the top management is better managing the company.

Answer 23

9.

To determine

To explain: The help a budget can make when the top management is better managing the company.

Answer 24

Expert Solution & Answer

Answer 25

Expert Solution & Answer

Answer 26

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Answer 27

Ch. 6 - What are the four elements of the budgeting cycle?Ch. 6 - Define master budget.Ch. 6 - Strategy, plans, and budgets are unrelated to ore...Ch. 6 - Budgeted performance is a better criterion than...Ch. 6 - Production managers and marketing managers are...Ch. 6 - Budgets meet the cost-benefit test. They force...Ch. 6 - Define rolling budget. Give an example.Ch. 6 - Outline the steps in preparing an operating...Ch. 6 - The sales forecast is the cornerstone for...Ch. 6 - Prob. 6.10Q

To explain: The questions the CEO can ask the marketing manager while reviewing the revenue budget.

To prepare: The production budget.

To prepare: The direct materials purchases budget in quantities.

The direct materials purchases budget in dollars.

To prepare: The direct manufacturing labor costs budget.

To prepare: The ending inventories for finished goods inventory.

To explain: The questions a CEO can ask the production manager while reviewing the production, direct materials and manufacturing labor budgets.

To explain: The help a budget can make when the top management is better managing the company.

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Chapter 6 Solutions